Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

I am currently in the process of buying the assets ( chairs,

tables, etc). The currrent owner...
I am currently in the process of buying the assets ( chairs, tables, etc). The currrent owner owes approx. 10,000 in sales tax and another 17,000 in employment taxes. I have been told that since I am only buying the physical property and have a new name and tax ID number and liquor license that these liablities will be his problem and not be my problem is this true? By the way this is in Iowa
Show More
Show Less
Ask Your Own Tax Question
Answered in 10 minutes by:
11/17/2012
Phillip B, EA
Phillip B, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 704
Experience: Practicing since 2004. Expert in 1040, small business, represent vs. IRS, & int'l tax mattters.
Verified

Thanks for using JustAnswer.com!

Yes. By purchasing the assets and organizing under a new entity and EIN, you start with a clean business. No sales or employment tax liabilities will shift to your new entity. Make sure there are no liens on the assets that you acquire -- this would most likely only be a concern for vehicles or buildings.

The employment and sales tax liabilities of the seller remain with his old business tax ID. Since they are sales and employment tax liabilities, the IRS and the state will also collect from him personally.

If there are other questions, please reply to this answer so that I may assist you further.

If this answers your questions, please rate my service between OK and Excellent so that I may be paid for assisting you. Thanks for your business.

Ask Your Own Tax Question
Customer reply replied 5 years ago


Thank you so much someone had me worried that this would be considered "successor business" and I looked up some tax code info that made me nervous stating that a successor business could be held liable if the original business owner failed to pay the outstanding tax liability. Based on your answer I'm guessing that would be true if I remained operating under corpoarte info.

Correct, the successor business issue would only arise if you opened business under the former owners corporate structure. You should be safe, and I sure your CPA and attorney are also being cautious of this issue.

Let me know it there is any other questions. If not, please remember to rate my performance.

Thank you.
Phillip B, EA
Phillip B, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 704
Experience: Practicing since 2004. Expert in 1040, small business, represent vs. IRS, & int'l tax mattters.
Verified
Phillip B, EA and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask Phillip B, EA Your Own Question
Phillip B, EA
Phillip B, EA
Phillip B, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 704
704 Satisfied Customers
Experience: Practicing since 2004. Expert in 1040, small business, represent vs. IRS, & int'l tax mattters.

Phillip B, EA is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
I own a business in Kentucky and owe state sales tax to the
I own a business in Kentucky and owe state sales tax to the state of Kentucky. Can the state of Kentucky place a lien on my home in Pennsylvania jointly owned by me and my wife … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
How to find out if I have a irs levy or lien. My mother
my mother passed away in 1999 I was her heir/executrix, in 2005 met life reported underlying shares and I just discovered it. Also, in 2008 I began working contract labor until about 2011 and got behind in taxes, to be exact about 12,000 payments have been sporadic, except for they take my 1400 tax return at the end of each year. can the IRS take my unclaimed texas state property … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
I am a Card holder planning to sell foreign assets (property
Hi....I am a Green Card holder planning to sell foreign assets (property in India)...I am aware that I will have to pay the higher of the 2 tax liabilities (either Indian or American)..I expect my US … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
723 satisfied customers
What is the rate of tax I will pay on the gain from the sale
What is the rate of tax I will pay on the gain from the sale of my house … read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,310 satisfied customers
I have a tax lien from the state of Iowa. It concerns the
I have a tax lien from the state of Iowa. It concerns the years 2005, 2006, 2007. When I asked them for "proof" that I owed them, they said that records that far back are no longer available. (They ch… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,463 satisfied customers
How do I treat the sale of self created assets such as
How do I treat the sale of self created assets such as customer lists when selling a business … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,217 satisfied customers
Does a tax lien NFTL recorded in my county post petition
Does a tax lien NFTL recorded in my county post petition hinders the Trustee's ability to collect equity through the sale of my home … read more
abci168
abci168
Principal
27 satisfied customers
Sell of property tax liability. Ca. Bought home 25 yrs ago
bought home 400,000 selling 2.5 mil. Invested 500,000 owe 800,000… read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,310 satisfied customers
Can the IRS seize my assets for neither having health
Can the IRS seize my assets for neither having health insurance or paying the penalties. … read more
abci168
abci168
Principal
27 satisfied customers
What would the federal and state tax rate percentages be for
What would the federal and state tax rate percentages be for a $7700 IRA early withdrawal in Ohio?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,463 satisfied customers
When does the Florida sales tax liability due to the DOR'
When does the Florida sales tax liability due to the DOR' invoice & delivery or title registration with the county tag office? … read more
abci168
abci168
Principal
27 satisfied customers
I have an IRS tax lien and making installment payments. I am
I have an IRS tax lien and making installment payments. I am likely to win a lawsuit within the next year. Can IRS attach my settlement? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
For non tax reasons, i want to transfer assets, non property
For non tax reasons, i want to transfer assets, non property assets, non 1231, 1245 assets, that are currently in an S corporation to a new S corporation. … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Is a lien automatically put on real estate property upon
is a lien automatically put on real estate property upon death of a NJ resident ? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Sales tax liens or warrants on a business can they be
Sales tax liens or warrants on a business can they be prevented if a stipulated payment agreement is entered first? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I have a question about an irs lien. I have a lien for taxes
I have a question about an irs lien. I have a lien for taxes due. The statute of limitations is close to expiring. The submitted a revocation of lien release. The statute tolled for 1 yr & I understan… read more
Andrew Jordan
Andrew Jordan
Shareholder
Master\u0027s Degree
5 satisfied customers
I just found out that there is a tax lien for sales tax
I just found out that there is a tax lien for sales tax filed against a business that I used to own. The lien was filed in 2014 in the date of Georgia. … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
Where is a sales tax table for state? I am doing my own
Where is a sales tax table for Washington state? JA: The Accountant will know how to help. Please tell me more, so we can help you best. Customer: I am doing my own taxes, just need a table JA: Is the… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x